Huntsville gazette., 1887-06-25
THE FIDELITY FAILURE.
pEPOsITORs' PROSPECTS GROWING
MORE GLOOMY.

mOhG dCSOuts
Difficulty of Getting 1T the True State Of
Anairs-.A Rumor That Harper Has
Skipped Out-Mr. Trenholm, the Comp
troller of Currency, at the Scene.
CINCINNATI, June 24.-There is nothing
new to be said concerning the Fidelity bank
failure. There is an abundance of gossip,
numerous incidents and multitudes of sus-
picions, but the whole story, devoid of all
elaboration, is told in few words. The
bank is complete wreck; depositors will
get only SO much as can be got from. the
stockholders many Of whom will resist pay
ment in the courts, so that the end is a long
way off.
Bank Examiner Powell, Expert Account
ant Williams, District Attorney Burnet and
their corps of assistants are moving as
rapidly as possible to get the affairs Of the
bankrupt institution into intel igible shape,
but it will be some time before this is accom-
plished.
The St. Paul building, on Fourth street, in
which is located the unfortunate Fidelity
bank, continues to be the center of interest,
as it has been for the past few days. Not
whit of interest in the collapsed concern has
abated, and the street is, as usual lined with
curious people, many of whom came blocks
out of their way to take look at the edifice.
Not single person-man, woman or child
passed without trying to get peep into the
windows or make out the finely written no
tices which have thrown a gloom upon SO
many hearts.
The efforts to elicit information from Mr..
Harper are met by him with the statement
that under advice of his attorney he will not
talk upon facts connected with the failure.
He thinks, however, that Briggs Swift ought
to be arrested as well as the others. He says
that neither Swift nor himself received
any salary as officers. He repeats his
statement formerly made that it was through
friendship hat he was drawn in to support
those in the DEAL and that his own specula-
tion had nothing to do with the failure.
The idea is becoming fixed in the public
mind that Briggs swift will be held respon-
sible pecuniarily on account Of the employ
ment Of Baldwin, who was known to be
defaulter in the Third National bank. A
number of the stockholders, too, have, it is
said, resolved to bring suit against Swift on
the assumption that be has committed errors
so gross as to amount to fraud, and has
neglected statuary and charter Pr visions ID
his capacity as president
Briggs Swift is we'll nigh Frustrated by
the excitement attending the failure. The
venerable gentleman takes it to heart, and
is in bed He said: 'No person shall lose
cent if can help it, 1t is not my wealth
but my honor that is at stake He says
that several days ago he knew that some
thing was wrong, and with Mr.. Zimmerman
on Sunday went to the bank with conf
Dental clerk, when he found 81, 0O0, 900 on
hand in cash and securities, but the latter
were nothing, being Joe Wilshire's paper.
He then knew he said that there would be
a smash, and that he could not prevent it.
One of the most significant statements
comes from Chicago broker, as it affects
the prospects here. 1t is to the effect that,
in addition to $1,000, 900 bushels of cash
wheat, the clique held 81, 900, 900 of June
options, which cost in some 81 100000. 1t
that is true there is little show for depositors
or other creditors.
The all-important question now is as to the
liability of the officers and directors of the
bank. Mr.. Henry Pogue resigned his di-
rectorship on Friday morning, but the opin-
ion is expressed that the resignation will not
stand, as the government bank examiner was
then making an investigation of the affairs
of the institution, and Mr.. Pogue, taking
alarm, sought to free himself from the re-
sponsibility attached to directors.
1t is also thought that Mr.. Eugene Zim-
merman's resignation will not avail, and
that he too will have to share in the amount
which will have to be made up by the direc-
tors to cover the deficiency. The other
directors are Mr.. Chatfield and Mr.. Swift.
On the first of June a reorganization took
place, it will be remembered, when the
number of directors was decreased from nine
to five, those who were dropped being
Messrs. Gahr, Matthews, Baldwin and Hop
kins OF the new board conservative esti-
mates place the wealth Of the members at
the following figures.
Harper, unknown.
Chatfield $400, 900 to $500, 000
Pogue, $1,000
Zimmerman, 500, 900 to $500, 900.
Swift, at least 81 100000.
1t is perfectly safe to estimate the wealth
of the four responsible directors at 81 ,2O0,-
600, and it is probable that they are worth
more than that. 1t is possible, in fact, prob
able, that the courts will be called upon to
decide whether Messrs. Pogue and thinner
man are, in law, directors.
ASSlStduL f1tOOIucy DTuCc WIS
asked at noon if there would be any more
arrests to-day.
"None that know Of" replied he, ''There
is nothing now to indicate that there will be
more arrests.
A new and startling phase was assumed in
the insolvency of E. L. Harper and E. L.
Harper & Co., at HAS a. m. Eugene Zim-
norman, the railroad man, financier and
millionai J, well known to have been init
mately connected with the collapsed Fidelity
bank and its evil genius, E. L. Harper,
walked into the probate court and rendered
his resignation as assignee of E. L. Harper
and E. L. Harper & Co., positions which he
but day before yesterday accepted. The res
ignation was accepted
Following upon the announcement that
Mr. Zimmerman had resigned came state
ment connected with it which casts another
shade of gloom over the already exceedingly
dark prospects of the creditors of Harper
and the Fidelity bank. The statement is
made by Attorney Louis Kramer that Har-
per has not So, 900 in assets, while his liabil-
tiles are appalling. 1t seems that Harpers
effects were all apothecated with diligent